London, May 1, 2026, 12:24 BST
According to Reuters, citing three sources, Apollo Global Management, Blackstone, and KKR are all in the running for a large stake in Shell Plc’s LNG Canada project, a deal that could fetch more than $10 billion—and possibly hit $15 billion. Shell, along with all three firms, declined Reuters’ requests for comment.
Timing matters here: Shell is looking to put capital back to work as it ramps up in Canadian gas. Just this week, the company struck a $16.4 billion deal for ARC Resources—Shell says it expects the acquisition to tack on 370,000 barrels of oil equivalent per day and boost its compound annual production growth rate to 4% through 2030.
The move effectively sets a benchmark for LNG Canada’s costs ahead of a potential Phase 2. LNG—liquefied natural gas—is natural gas cooled to a liquid for easier shipping. Shell and its group started producing from LNG Canada last June. Reuters has reported a call on whether to proceed with a second phase could come soon.
Shell holds a 40% stake in the Kitimat project in British Columbia, opening a Pacific route for North American gas into Asia. This week, Chief Executive Wael Sawan said the company feels “very comfortable” with that position and is “not necessarily” planning to trim it, even as Shell continues efforts to pull cash out of lower-return assets it sees as outside its core. Reuters
Shell continues to flag shareholder returns, reporting that it repurchased 1,408,259 ordinary shares—set for cancellation—on April 30. The transactions took place on London and European venues, with Morgan Stanley handling trades independently under the existing buyback mandate.
Shell listed its share capital at 5,607,066,071 ordinary shares as of April 30 in a separate filing, with none held in treasury. That’s the figure investors look at to determine if they need to report changes in their holdings under UK regulations.
Shell’s $3.5 billion buyback, now underway, is set to finish by May 1—wrapping up just ahead of first-quarter earnings. The repurchase is split down the middle: $1.75 billion each for contracts in London and the Netherlands. All of those shares are slated for cancellation.
Shell’s deal with ARC puts more natural gas near its LNG Canada project. CEO Sawan described Canada as a “heartland for Shell.” The company pointed to ARC’s gas reserves as a boost for its LNG ambitions and estimates the acquisition will deliver around $250 million in annualised synergies within a year after closing. Shell
Analysts are weighing how this all lines up. Morningstar equity analyst Adam Baker said the ARC acquisition “makes sense,” pointing out Shell’s role as the largest offtaker from LNG Canada and highlighting ARC’s marketing and transport agreements. He added he doesn’t expect many regulatory obstacles for the deal. Morningstar
Shell isn’t the only company eyeing the north. According to Reuters, global players including TotalEnergies, ConocoPhillips, and BP are once again sizing up Canadian energy assets as export options brighten and instability in the Middle East boosts demand for oil from safer jurisdictions.
But nothing’s set in stone. According to Reuters, Shell might hang onto part—or even all—of its LNG Canada stake. The ARC sale? Still hinges on shareholder, court, and regulatory sign-offs at ARC. Shell, for its part, has flagged more uncertainty clouding its first-quarter outlook, citing the Middle East conflict and swings in commodity prices.
The next challenge comes fast. Shell is set to report first-quarter numbers on May 7, with its update highlighting not just the LNG Canada ramp, but also production headaches in Qatar, weather issues in Australia, and a big swing in working capital linked to the wild ride in commodity prices.
